My picks: Range Trade GBP/CHF
Expertise: Fundamentals and Technicals
Average Time Frame of Trades: 2 - 10 Days
The rally in the GBP/CHF during the previous week triggered my long entry at 1.6875, the 5/11 high, and the advance this week reached my target at 1.7257 as the pair surged to a fresh monthly of 1.7389 during the overnight session. However, the lack of momentum to push back above 1.7500-10 (61.8% Fib of 1.5124-1.8976) is likely to keep the pair within its current range over the near-term, and I will continue to range-trade the pair as the BoE and SNB continue to hold a dovish outlook for future policy. As a result, I expect the pair to retrace the rally from the previous week, and have placed a short entry at 1.6991, the weekly low, and set my target at 1.6803, the 50-Day SMA, with the stop at the 5/21 low of 1.7080.
